Users of select US banks will be able to transact Bitcoin through their checking accounts, according to crypto custody firm NYDIG.
An estimated 300 banks unveiled their plans last year in June will first implement the service with help from FinTech NYDIG. The majority of regulatory and security issues were resolved within months of the first announcement, and agreements and integrations between NYDIG and current technology by banks and vendors were developed, participants said.
According to a consortium of banking communities working on high-tech goals last year, customers could buy and sell bitcoin using mobile banking apps.
According to bank and business organization leaders, customers have expressed a strong need for the program.
Executive Vice President of Technology, Security and Operations at Synovus Zack Bishop says that around $56 billion in assets, digital assets are becoming increasingly important to banks. Banks increasingly lend primarily on tangible assets such as automobiles, farm equipment and commercial real estate. The banking industry will tend to digitize assets and place them on public blockchains with demonstrable records of ownership and value, blockchain-based security.
According to industry authorities, bitcoin trading can generate revenue and help banks stay competitive and retain customers.
The NYDIG client isn’t the first to break the mould. Vast Bank of Tulsa, Oklahoma, partnered with Coinbase in October to enable bitcoin purchases through bank accounts, and it now supports a total of 12 coins.
NYDIG is the bank’s first subcustodian arrangement, despite the bank’s efforts to develop a network of providers. According to the release, NYDIG topped the list due to its industry experience in managing compliance and regulatory standards.